So after a morning of reflection we have a clearer picture of the whole in terms of the Bank of Canada’s overnight lending rate (which is now at 4.5%). As a direct quote from the statement here:
In line with this outlook, the Bank is raising the target for the overnight rate to 4 1/2 per cent. Some modest further increase in the overnight rate may be required to bring inflation back to the target over the medium term.
A “modest” increase is always an interesting description, so further increases are coming but they may not be a lot, would be a good guess for now. The next scheduled review of interest rates is scheduled for September the 5th, right after Labor Day, so we shall see then whether we are in for another hike then, or whether it will be a “wait and see” tactic adopted by the bank.
For those of us who have forgotten how LOW rates have gone, here is a helpful graph that I created from the Bank of Canada’s data for the past 10 years. It is based on the monthly rate, not the overnight rate, but still you get the feel for how LOW rates have been for the past 10 years.